Step 1: Cost Accumulation

Enumerating state-action transitions and calculating costs

Battery Optimization | Dynamic Programming
In a nutshell
  • Revenue Maximization: Maximize revenue by actively arbitraging day-ahead and intraday energy price fluctuations.
  • Global Optimum: Uses Dynamic Programming (DP) to find the mathematically guaranteed optimal charge/discharge schedule.
  • Constraint Handling: Automatically ensures strict adherence to all battery constraints (SoC limits, C-rates) and grid limits.

Dynamic Programming: The minimum cost to reach state s at time t.

$$C(s, t) = \min_{s_{prev}} \left[ C(s_{prev}, t-1) + (\Delta E \times \lambda_t) \right] \ ; \quad \quad \quad \Delta E = s - s_{prev} \ ; \quad \quad \quad \lambda_t = \text{Price at time } t $$
The presented example is simplified for illustration purposes. In reality, the EMS carries out further processes to ensure safe and reliable operation.